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Re‐Examining the SNAP Benefit Cycle Allowing for Heterogeneity
Author(s) -
Dorfman Jeffrey H,
Gregory Christian,
Liu Zhongyuan,
Huo Ran
Publication year - 2019
Publication title -
applied economic perspectives and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.4
H-Index - 49
eISSN - 2040-5804
pISSN - 2040-5790
DOI - 10.1093/aepp/ppy013
Subject(s) - snap , supplemental nutrition assistance program , demographic economics , economics , econometrics , public economics , business , computer science , food insecurity , geography , food security , computer graphics (images) , archaeology , agriculture
A well‐known feature of the Supplemental Nutrition Assistance Program (SNAP) is that some recipients spend a disproportionate amount of their monthly benefit early in the month. Using a finite mixture model that optimally separates households into two groups, coupled with the National Household Food Acquisition and Purchase Survey, we re‐examine this spending pattern. Results show that a minority of SNAP recipients cause the benefit cycle by spending, on average, two‐thirds of their monthly benefit within the first four days. A potential implication of these findings is that more frequent SNAP benefit disbursal or educational programs designed to encourage smoother spending over the month might be of benefit to some SNAP households.